Castera Inc. reported a net income of $800,000 and a weighted average number of common shares of

Question:

Castera Inc. reported a net income of $800,000 and a weighted average number of common shares of 300,000 for the year. It also had 50,000 $2 preferred shares. Calculate basic earnings per share assuming
(a) The preferred shares are cumulative and the was not paid,
(b) The preferred shares are noncumulative and the was paid, and
(c) The preferred shares are noncumulative and the was not paid.
Dividend
A dividend is a distribution of a portion of company’s earnings, decided and managed by the company’s board of directors, and paid to the shareholders. Dividends are given on the shares. It is a token reward paid to the shareholders for their...